Common use of INCOME PAYMENT Clause in Contracts

INCOME PAYMENT. On or before the Income Date, You can elect payment in a single lump-sum. A single lump-sum payment terminates the Contract. The Company will make payment to You or another payee You specify. Alternatively, You may elect an income option. The Company will apply the Contract Value, less any applicable premium taxes, to provide You Fixed Annuity Payments or Variable Annuity Payments according to Your selected income option. If You do not choose how to receive Your Income Payments, Your Income Payments will be Variable Annuity Payments based on the Investment Divisions. Income Options. You can elect payment as provided in Option 1, 2, 3 or 4 below. You can elect an income option at any time before the Income Date and You can change an income option up to seven (7) days before the Income Date by submitting Written Notice in Good Order to the Company's Service Center. The Company will make payment to You or another payee You specify. If You do not select an income option, the Company will make payments as provided in Option 3 below, with 120 months certain. The Company will make payments monthly, quarterly, semiannually or annually as You elect; provided that the Company may pay any amount less than $2,000 in one (1) lump-sum payment. The single lump-sum payment will not be less than the amount which would have been applied under an income option. In addition, if the first monthly payment provided would be less than $20, the Company may require payments to be made at quarterly, semiannual or annual intervals so as to result in an initial payment of at least $20, or the Company has the right to make one (1) single lump-sum payment. The Company will calculate Income Payments not less than the Income Payments determined by applying the Contract Value to purchase a single premium immediate annuity contract from the Company at purchase rates the Company offered on the Income Date to annuitants in the same class as the Annuitant. The amount applied to an income option will not be less than the greater of the Withdrawal Value or 95% of the Contract Value after being adjusted by any previous Market Value Adjustment. YOU MAY NOT TAKE WITHDRAWALS DURING ANY PERIOD THE COMPANY IS MAKING PAYMENTS FOR THE ANNUITANT'S LIFE. OPTION 1 - LIFE INCOME. A monthly payment for the Annuitant's lifetime. All payments end upon the Annuitant's death. However, in the event of the Annuitant's death before the first monthly payment, the Company will pay the amount allocated to this income option to You or, if You are deceased, to Your Beneficiary. VA790NY 19 INCOME PROVISIONS (CONT'D) OPTION 2 - JOINT AND SURVIVOR INCOME. A monthly payment for the longer of the Annuitant's lifetime or that of a second person You designate. Upon the occasion of the first person to die, monthly payments continue during the survivor's lifetime at either the full amount previously payable or as a percentage (either one-half or two-thirds) of the full amount, as You select at the time You elect the income option. The Company will calculate Variable Annuity Payments using either one-half or two-thirds of the number of each type of Annuity Unit credited if reduced annuity payments to the survivor are desired. The Company will calculate Fixed Annuity Payments equal to either one-half or two-thirds of the Fixed Annuity Payment payable during the joint life of the Annuitant and the designated second person. All payments end upon the death of the last surviving Annuitant. However, in the event of the deaths of the Annuitant and the designated second person before the first monthly payment, the Company will pay the amount allocated to this income option to You or, if You are deceased, Your Beneficiary. OPTION 3 - LIFE INCOME WITH 120 OR 240 MONTHLY PERIODS GUARANTEED. A monthly payment for the Annuitant's lifetime with the guarantee that the Company will make no fewer than 120 or 240 monthly payments to You. If, at the Annuitant's death, fewer than the guaranteed number of payments have been made, the remaining guaranteed payments will be made to You as previously scheduled. In the event You die before the Company makes the specified number of guaranteed payments, Your Beneficiary may elect to continue to receive the Income Payments according to the terms of this Contract, or alternatively may elect to receive the present value of any remaining guaranteed payments in a single lump-sum payment, the amount of which the Company will calculate using the interest rate the Company originally used to determine the benefit payments upon annuitization. OPTION 4 - INCOME FOR A SPECIFIED PERIOD. A monthly payment for any number of years ranging from 5 to 30. This election must be made for full 12-month periods. In the event You die before the Company makes the specified number of payments, Your Beneficiary may elect to continue to receive the Income Payments according to the terms of this Contract, or alternatively may elect to receive the present value of any remaining guaranteed payments in a single lump-sum payment, the amount of which the Company will calculate using the interest rate the Company originally used to determine the benefit payments upon annuitization. ADDITIONAL INCOME OPTIONS. The Company may make available other income options. VA790NY 20 INCOME PROVISIONS (CONT'D) The Owner may elect either fixed or variable annuity payments as described below. FIXED ANNUITY PAYMENTS. The Company will determine Fixed Annuity Payments by applying annuity rates consistent with the age and sex of the Annuitant and, if applicable, the designated second person, to the Contract Value, less any applicable premium taxes. Annuity rates applied will not be less than the rates provided in the Contract's Table of Income Options. Once begun, the Company will not change the amount of Fixed Annuity Payments. VARIABLE ANNUITY PAYMENTS. The Company will determine the initial Variable Annuity Payment by applying annuity rates consistent with the age and sex of the Annuitant and, if applicable, the designated second person, to the Contract Value allocated to the Investment Divisions, less any applicable premium taxes. Annuity rates applied will not be less than the rates provided in the Contract's Table of Income Options. The Company will determine the second and subsequent Variable Annuity Payments in two (2) steps. First, the Company will divide the initial Variable Annuity Payment by the Annuity Unit Value calculated on the Income Date to establish a number of Annuity Units. Second, the Company will multiply the number of Annuity Units by the Annuity Unit Value determined on the Business Day next preceding the date on which each payment is due. The result of each calculation determines the Variable Annuity Payment due. Once Variable Annuity Payments have begun, the number of Annuity Units remains constant absent a reallocation of the Investment Divisions. Variable Annuity Payments are not affected by expenses other than taxes. Neither expenses actually incurred, other than taxes on the investment return, nor mortality actually experienced, shall adversely affect the dollar amount of Variable Annuity Payments after such payments have commenced. Annuity Unit Value. The Company sets the initial value of an Annuity Unit of each Investment Division when the Company establishes the Investment Division. The Annuity Unit Value reflects the investment performance of an Investment Division and may increase or decrease from one (1) Business Day to the next. The Contract's Table of Income Options assumes the net investment rates described in the Contract's Basis of Computation provision. Therefore, if an Investment Division's actual net investment rate is greater than or less than the assumed net investment rate, Variable Annuity Payments will increase or decrease accordingly over time. The Company calculates each Investment Division's Annuity Unit Value for any Business Day in two (2) steps: First, the Company multiplies the immediately preceding Business Day's Annuity Unit Value by the Business Day's "net investment factor" determined on the day of the calculation. The Company determines the "net investment factor", which reflects changes in the Investment Division's net asset value, by dividing the value established at (1) below by the value established at (2) below, and then subtracting the value established at (3) below, where:

INCOME PAYMENT. On or before the Income Date, You can elect payment in a single lump-sum. A single lump-sum payment terminates the Contract. The Company will make payment to You or another payee You specify. Alternatively, You may elect an income option. The Company will apply the Contract Value, less any applicable premium taxes, Market Value Adjustment, and other Contract charges, to provide You Fixed Annuity Payments or Variable Annuity Payments according to Your selected income option. If You do not choose how to receive Your Income Payments, Your Income Payments will be Variable Annuity Payments based on the Investment Divisions. Income Options. You can elect payment as provided in Option 1, 2, 3 or 4 below. You can elect an income option at any time before the Income Date and You can change an income option up to seven (7) days before the Income Date by submitting Written Notice in Good Order to the Company's Service Center. The Company will make payment to You or another payee You specify. If You do not select an income option, the Company will make payments as provided in Option 3 below, with 120 months certain. The Company will make payments monthly, quarterly, semiannually or annually as You elect; provided that the Company may pay any amount less than $2,000 in one (1) lump-sum payment. The single lump-sum payment will not be less than the amount which would have been applied under an income option. In addition, if If the first monthly payment provided would be less than $20, the Company may require payments to be made at quarterly, semiannual or annual intervals so as to result in an initial payment of at least $20, or the Company has the right to make one (1) single lump-sum payment. The Company will calculate Income Payments not less than the Income Payments determined by applying the Contract Value to purchase a single premium immediate annuity contract from the Company at purchase rates the Company offered on the Income Date to annuitants in the same class as the Annuitant. The amount applied to an income option will not be less than the greater of the Withdrawal Value or 95% of the Contract Value after being adjusted by any previous Market Value Adjustment. YOU MAY NOT TAKE WITHDRAWALS DURING ANY PERIOD THE COMPANY IS MAKING PAYMENTS FOR THE ANNUITANT'S LIFE. OPTION 1 - LIFE INCOME. A monthly payment for the Annuitant's lifetime. All payments end upon the Annuitant's death. However, in the event of the Annuitant's death before the first monthly payment, the Company will pay the amount allocated to this income option to You or, if You are deceased, to Your Beneficiary. VA790NY 19 INCOME PROVISIONS (CONT'D) OPTION 2 - JOINT AND SURVIVOR INCOME. A monthly payment for the longer of the Annuitant's lifetime or that of a second person You designate. Upon the occasion of the first person No Market Value Adjustment applies to die, monthly payments continue during the survivor's lifetime at either the full amount previously payable or as a percentage (either one-half or two-thirds) of the full amount, as You select at the time You elect the income option. The Company will calculate Variable Annuity Payments using either one-half or two-thirds of the number of each type of Annuity Unit credited if reduced annuity payments to the survivor are desired. The Company will calculate Fixed Annuity Payments equal to either one-half or two-thirds of the Fixed Annuity Payment payable during the joint life of the Annuitant and the designated second person. All payments end upon the death of the last surviving Annuitant. However, in the event of the deaths of the Annuitant and the designated second person before the first monthly payment, the Company will pay the amount allocated to this income option to You or, if You are deceased, Your Beneficiary. OPTION 3 - LIFE INCOME WITH 120 OR 240 MONTHLY PERIODS GUARANTEED. A monthly payment for the Annuitant's lifetime with the guarantee that the Company will make no fewer than 120 or 240 monthly payments to You. If, at the Annuitant's death, fewer than the guaranteed number of payments have been made, the remaining guaranteed payments will be made to You as previously scheduled. In the event You die before the Company makes the specified number of guaranteed payments, Your Beneficiary may elect to continue to receive the Income Payments according to the terms of this Contract, or alternatively may elect to receive the present value of any remaining guaranteed payments in a single lump-sum payment, the amount of which the Company will calculate using the interest rate the Company originally used to determine the benefit payments upon annuitization. OPTION 4 - INCOME FOR A SPECIFIED PERIOD. A monthly payment for any number of years ranging from 5 to 30. This election must be made for full 12-month periods. In the event You die before the Company makes the specified number of payments, Your Beneficiary may elect to continue to receive the Income Payments according to the terms of this Contract, or alternatively may elect to receive the present value of any remaining guaranteed payments in a single lump-sum payment, the amount of which the Company will calculate using the interest rate the Company originally used to determine the benefit payments upon annuitization. ADDITIONAL INCOME OPTIONS. The Company may make available other income options. VA790NY 20 INCOME PROVISIONS (CONT'D) The Owner may elect either fixed or variable annuity payments as described below. FIXED ANNUITY PAYMENTS. The Company will determine Fixed Annuity Payments by applying annuity rates consistent with the age and sex of the Annuitant and, if applicable, the designated second person, to the Contract Value, less any applicable premium taxes. Annuity rates applied will not be less than the rates provided in the Contract's Table of Income Options. Once begun, the Company will not change the amount of Fixed Annuity Payments. VARIABLE ANNUITY PAYMENTS. The Company will determine the initial Variable Annuity Payment by applying annuity rates consistent with the age and sex of the Annuitant and, if applicable, the designated second person, to the Contract Value allocated applied to the Investment Divisions, less any applicable premium taxes. Annuity rates applied will not be less than the rates provided in the Contract's Table of Income Options. The Company will determine the second and subsequent Variable Annuity Payments in two (2) steps. First, the Company will divide the initial Variable Annuity Payment by the Annuity Unit Value calculated on the Income Date to establish a number of Annuity Units. Second, the Company will multiply the number of Annuity Units by the Annuity Unit Value determined on the Business Day next preceding the date on which each payment is due. The result of each calculation determines the Variable Annuity Payment due. Once Variable Annuity Payments have begun, the number of Annuity Units remains constant absent a reallocation of the Investment Divisions. Variable Annuity Payments are not affected by expenses other than taxes. Neither expenses actually incurred, other than taxes on the investment return, nor mortality actually experienced, shall adversely affect the dollar amount of Variable Annuity Payments after such payments have commenced. Annuity Unit Value. The Company sets the initial value of an Annuity Unit of each Investment Division when the Company establishes the Investment Division. The Annuity Unit Value reflects the investment performance of an Investment Division and may increase or decrease from one (Option 1) Business Day to the next. The Contract's Table of Income Options assumes the net investment rates described in the Contract's Basis of Computation provision. Therefore, if an Investment Division's actual net investment rate is greater than or less than the assumed net investment rate, Variable Annuity Payments will increase or decrease accordingly over time. The Company calculates each Investment Division's Annuity Unit Value for any Business Day in two (2) steps: First, the Company multiplies the immediately preceding Business Day's Annuity Unit Value by the Business Day's "net investment factor" determined on the day of the calculation. The Company determines the "net investment factor", which reflects changes in the Investment Division's net asset value, by dividing the value established at (1) below by the value established at (2) below, and then subtracting the value established at (3) below, where:.

INCOME PAYMENT. On or before the Income Date, You can elect payment in a single lump-lump- sum. A single lump-sum payment terminates the Contract. The Company will make payment to You or another payee You specify. Alternatively, You may elect an income option. The Company will apply the Contract Value, less any applicable premium taxes, Market Value Adjustment, and other Contract charges, to provide You Fixed Annuity Payments or Variable Annuity Payments according to Your selected income option. If You do not choose how to receive Your Income Payments, Your Income Payments will be Variable Annuity Payments based on the Investment Divisions. Income Options. You can elect payment as provided in Option 1, 2, 3 or 4 below. You can elect an income option at any time before the Income Date and You can change an income option up to seven (7) days before the Income Date by submitting Written Notice in Good Order to the Company's Service Center. The Company will make payment to You or another payee You specify. If You do not select an income option, the Company will make payments as provided in Option 3 below, with 120 months certain. The Company will make payments monthly, quarterly, semiannually or annually as You elect; provided that the Company may pay any amount less than $2,000 in one (1) lump-sum payment. The single lump-sum payment will not be less than the amount which would have been applied under an income option. In addition, if If the first monthly payment provided would be less than $20, the Company may require payments to be made at quarterly, semiannual or annual intervals so as to result in an initial payment of at least $20, or the Company has the right to make one (1) single lump-sum payment. The Company will calculate Income Payments not less than the Income Payments determined by applying the Contract Value to purchase a single premium immediate annuity contract from the Company at purchase rates the Company offered on the Income Date to annuitants in the same class as the Annuitant. The amount applied to an income option will not be less than the greater of the Withdrawal Value or 95% of the Contract Value after being adjusted by any previous Market Value Adjustment. YOU MAY NOT TAKE WITHDRAWALS DURING ANY PERIOD THE COMPANY IS MAKING PAYMENTS FOR THE ANNUITANT'S LIFE. OPTION 1 - LIFE INCOME. A monthly payment for the Annuitant's lifetime. All payments end upon the Annuitant's death. However, in the event of the Annuitant's death before the first monthly payment, the Company will pay the amount allocated to this income option to You or, if You are deceased, to Your Beneficiary. VA790NY 19 INCOME PROVISIONS (CONT'D) OPTION 2 - JOINT AND SURVIVOR INCOME. A monthly payment for the longer of the Annuitant's lifetime or that of a second person You designate. Upon the occasion of the first person No Market Value Adjustment applies to die, monthly payments continue during the survivor's lifetime at either the full amount previously payable or as a percentage (either one-half or two-thirds) of the full amount, as You select at the time You elect the income option. The Company will calculate Variable Annuity Payments using either one-half or two-thirds of the number of each type of Annuity Unit credited if reduced annuity payments to the survivor are desired. The Company will calculate Fixed Annuity Payments equal to either one-half or two-thirds of the Fixed Annuity Payment payable during the joint life of the Annuitant and the designated second person. All payments end upon the death of the last surviving Annuitant. However, in the event of the deaths of the Annuitant and the designated second person before the first monthly payment, the Company will pay the amount allocated to this income option to You or, if You are deceased, Your Beneficiary. OPTION 3 - LIFE INCOME WITH 120 OR 240 MONTHLY PERIODS GUARANTEED. A monthly payment for the Annuitant's lifetime with the guarantee that the Company will make no fewer than 120 or 240 monthly payments to You. If, at the Annuitant's death, fewer than the guaranteed number of payments have been made, the remaining guaranteed payments will be made to You as previously scheduled. In the event You die before the Company makes the specified number of guaranteed payments, Your Beneficiary may elect to continue to receive the Income Payments according to the terms of this Contract, or alternatively may elect to receive the present value of any remaining guaranteed payments in a single lump-sum payment, the amount of which the Company will calculate using the interest rate the Company originally used to determine the benefit payments upon annuitization. OPTION 4 - INCOME FOR A SPECIFIED PERIOD. A monthly payment for any number of years ranging from 5 to 30. This election must be made for full 12-month periods. In the event You die before the Company makes the specified number of payments, Your Beneficiary may elect to continue to receive the Income Payments according to the terms of this Contract, or alternatively may elect to receive the present value of any remaining guaranteed payments in a single lump-sum payment, the amount of which the Company will calculate using the interest rate the Company originally used to determine the benefit payments upon annuitization. ADDITIONAL INCOME OPTIONS. The Company may make available other income options. VA790NY 20 INCOME PROVISIONS (CONT'D) The Owner may elect either fixed or variable annuity payments as described below. FIXED ANNUITY PAYMENTS. The Company will determine Fixed Annuity Payments by applying annuity rates consistent with the age and sex of the Annuitant and, if applicable, the designated second person, to the Contract Value, less any applicable premium taxes. Annuity rates applied will not be less than the rates provided in the Contract's Table of Income Options. Once begun, the Company will not change the amount of Fixed Annuity Payments. VARIABLE ANNUITY PAYMENTS. The Company will determine the initial Variable Annuity Payment by applying annuity rates consistent with the age and sex of the Annuitant and, if applicable, the designated second person, to the Contract Value allocated applied to the Investment Divisions, less any applicable premium taxes. Annuity rates applied will not be less than the rates provided in the Contract's Table of Income Options. The Company will determine the second and subsequent Variable Annuity Payments in two (2) steps. First, the Company will divide the initial Variable Annuity Payment by the Annuity Unit Value calculated on the Income Date to establish a number of Annuity Units. Second, the Company will multiply the number of Annuity Units by the Annuity Unit Value determined on the Business Day next preceding the date on which each payment is due. The result of each calculation determines the Variable Annuity Payment due. Once Variable Annuity Payments have begun, the number of Annuity Units remains constant absent a reallocation of the Investment Divisions. Variable Annuity Payments are not affected by expenses other than taxes. Neither expenses actually incurred, other than taxes on the investment return, nor mortality actually experienced, shall adversely affect the dollar amount of Variable Annuity Payments after such payments have commenced. Annuity Unit Value. The Company sets the initial value of an Annuity Unit of each Investment Division when the Company establishes the Investment Division. The Annuity Unit Value reflects the investment performance of an Investment Division and may increase or decrease from one (Option 1) Business Day to the next. The Contract's Table of Income Options assumes the net investment rates described in the Contract's Basis of Computation provision. Therefore, if an Investment Division's actual net investment rate is greater than or less than the assumed net investment rate, Variable Annuity Payments will increase or decrease accordingly over time. The Company calculates each Investment Division's Annuity Unit Value for any Business Day in two (2) steps: First, the Company multiplies the immediately preceding Business Day's Annuity Unit Value by the Business Day's "net investment factor" determined on the day of the calculation. The Company determines the "net investment factor", which reflects changes in the Investment Division's net asset value, by dividing the value established at (1) below by the value established at (2) below, and then subtracting the value established at (3) below, where:.

INCOME PAYMENT. On or before the Income Date, You can elect payment in a single lump-lump- sum. A single lump-sum payment terminates the Contract. The Company will make payment to You or another payee You specify. Alternatively, You may elect an income option. The Company will apply the Contract Value, less any applicable premium taxes, Value to provide You Fixed Annuity Payments or Variable Annuity Payments according to Your selected income option. If You do not choose how to receive Your Income Payments, Your Income Payments will be Variable Annuity Payments based on the Investment Divisions. Income Options. You can elect payment as provided in Option 1, 2, 3 or 4 below. You can elect an income option at any time before the Income Date and You can change an income option up to seven (7) days before the Income Date by submitting Written Notice in Good Order to the Company's Service Center. The Company will make payment to You or another payee You specify. If You do not select an income option, the Company will make payments as provided in Option 3 below, with 120 months certain. The Company will make payments monthly, quarterly, semiannually or annually as You elect; provided that the Company may pay any amount less than $2,000 in one (1) lump-sum payment. The single lump-sum payment will not be less than the amount which would have been applied under an income option. In addition, if the first monthly payment provided would be less than $20, the Company may require payments to be made at quarterly, semiannual or annual intervals so as to result in an initial payment of at least $20, or the Company has the right to make one (1) single lump-sum payment. The Company will calculate Income Payments at the time of their commencement will not be less than those that would be provided by the Income Payments determined by applying the Contract Value application of an amount to purchase a single premium immediate annuity contract from the Company at purchase rates the Company offered on the Income Date to annuitants in the same class as the Annuitant. The amount applied to an income option will not be less than the greater of the Withdrawal Value or 95% of the Contract Value after being adjusted by any previous Market Value Adjustment. YOU MAY NOT TAKE WITHDRAWALS DURING ANY PERIOD THE COMPANY IS MAKING PAYMENTS FOR THE ANNUITANT'S LIFE. OPTION 1 - LIFE INCOME. A monthly payment for the Annuitant's lifetime. All payments end upon the Annuitant's death. However, in the event of the Annuitant's death before the first monthly payment, the Company will pay the amount allocated to this income option to You or, if You are deceased, to Your Beneficiary. VA790NY 19 INCOME PROVISIONS (CONT'D) OPTION 2 - JOINT AND SURVIVOR INCOME. A monthly payment for the longer of the Annuitant's lifetime or that of a second person You designate. Upon the occasion of the first person to die, monthly payments continue during the survivor's lifetime at either the full amount previously payable or as a percentage (either one-half or two-thirds) of the full amount, as You select at the time You elect the income option. The Company will calculate Variable Annuity Payments using either one-half or two-thirds of the number of each type of Annuity Unit credited if reduced annuity payments to the survivor are desired. The Company will calculate Fixed Annuity Payments equal to either one-half or two-thirds of the Fixed Annuity Payment payable during the joint life of the Annuitant and the designated second person. All payments end upon the death of the last surviving Annuitant. However, in the event of the deaths of the Annuitant and the designated second person before the first monthly payment, the Company will pay the amount allocated to this income option to You or, if You are deceased, Your Beneficiary. OPTION 3 - LIFE INCOME WITH 120 OR 240 MONTHLY PERIODS GUARANTEED. A monthly payment for the Annuitant's lifetime with the guarantee that the Company will make no fewer than 120 or 240 monthly payments to You. If, at the Annuitant's death, fewer than the guaranteed number of payments have been made, the remaining guaranteed payments will be made to You as previously scheduled. In the event You die before the Company makes the specified number of guaranteed payments, Your Beneficiary may elect to continue to receive the Income Payments according to the terms of this Contract, or alternatively may elect to receive the present value of any remaining guaranteed payments in a single lump-sum payment, the amount of which the Company will calculate using the interest rate the Company originally used to determine the benefit payments upon annuitization. OPTION 4 - INCOME FOR A SPECIFIED PERIOD. A monthly payment for any number of years ranging from 5 to 30. This election must be made for full 12-month periods. In the event You die before the Company makes the specified number of payments, Your Beneficiary may elect to continue to receive the Income Payments according to the terms of this Contract, or alternatively may elect to receive the present value of any remaining guaranteed payments in a single lump-lump- sum payment, the amount of which the Company will calculate using the interest rate the Company originally used to determine the benefit payments upon annuitization. ADDITIONAL INCOME OPTIONS. The Company may make available other income options. VA790NY 20 INCOME PROVISIONS (CONT'D) The Owner may elect either fixed or variable annuity payments as described below. FIXED ANNUITY PAYMENTS. The Company will determine Fixed Annuity Payments by applying annuity rates consistent with the age and sex of the Annuitant and, if applicable, the designated second person, to the Contract Value, less any applicable premium taxes. Annuity rates applied will not be less than the rates provided in the Contract's Table of Income Options. Once begun, the Company will not change the amount of Fixed Annuity Payments. VARIABLE ANNUITY PAYMENTS. The Company will determine the initial Variable Annuity Payment by applying annuity rates consistent with the age and sex of the Annuitant and, if applicable, the designated second person, to the Contract Value allocated to the Investment Divisions, less any applicable premium taxes. Annuity rates applied will not be less than the rates provided in the Contract's Table of Income Options. The Company will determine the second and subsequent Variable Annuity Payments in two (2) steps. First, the Company will divide the initial Variable Annuity Payment by the Annuity Unit Value calculated on the Income Date to establish a number of Annuity Units. Second, the Company will multiply the number of Annuity Units by the Annuity Unit Value determined on the Business Day next preceding the date on which each payment is due. The result of each calculation determines the Variable Annuity Payment due. Once Variable Annuity Payments have begun, the number of Annuity Units remains constant absent a reallocation of the Investment Divisions. Variable Annuity Payments are not affected by expenses other than taxes. Neither expenses actually incurred, other than taxes on the investment return, nor mortality actually experienced, shall adversely affect the dollar amount of Variable Annuity Payments after such payments have commenced. Annuity Unit Value. The Company sets the initial value of an Annuity Unit of each Investment Division when the Company establishes the Investment Division. The Annuity Unit Value reflects the investment performance of an Investment Division and may increase or decrease from one (1) Business Day to the next. The Contract's Table of Income Options assumes the net investment rates described in the Contract's Basis of Computation provision. Therefore, if an Investment Division's actual net investment rate is greater than or less than the assumed net investment rate, Variable Annuity Payments will increase or decrease accordingly over time. The Company calculates each Investment Division's Annuity Unit Value for any Business Day in two (2) steps: First, the Company multiplies the immediately preceding Business Day's Annuity Unit Value by the Business Day's "net investment factor" determined on the day of the calculation. The Company determines the "net investment factor", which reflects changes in the Investment Division's net asset value, by dividing the value established at (1) below by the value established at (2) below, and then subtracting the value established at (3) below, where: